Oil States International(US:OIS)2025-07-31 20:24Financial Performance - Total revenues for Q2 2025 were $165.4 million, a decrease of 11.2% compared to $186.4 million in Q2 2024[10] - Product revenues were $107.3 million, slightly down from $108.6 million in the same quarter last year, while service revenues dropped to $58.1 million from $77.8 million[10] - Net income for the six months ended June 30, 2025, was $5.97 million, a significant recovery from a net loss of $12.07 million in the same period of 2024[12] - The company reported an operating income of $5.28 million for Q2 2025, compared to an operating income of $2.05 million in Q2 2024[10] - Comprehensive income for the six months ended June 30, 2025, was $20.6 million, compared to a comprehensive loss of $18.25 million in the same period last year[12] - The company reported a net income of $2.8 million for the three months ended June 30, 2025, compared to a net income of $1.3 million for the same period in 2024, reflecting a year-over-year increase of approximately 116%[61] - For the six months ended June 30, 2025, the company achieved a net income of $6.0 million, a significant recovery from a net loss of $12.1 million in the same period of 2024[61] - Net income for Q2 2025 was $2.8 million, or $0.05 per share, compared to $1.3 million, or $0.02 per share, in Q2 2024[120] - Operating income for Q2 2025 was $5.3 million, an increase of $3.2 million compared to Q2 2024, which reported an operating income of $2.0 million[115] Assets and Liabilities - Current assets decreased to $487.7 million as of June 30, 2025, from $498.2 million at the end of 2024[14] - Total liabilities decreased to $303.1 million from $324.5 million at the end of 2024, indicating improved financial health[14] - The company’s cash and cash equivalents were $53.9 million, down from $65.4 million at the end of 2024[14] - Total assets as of June 30, 2025, were $993.745 million, compared to $1,001.178 million as of June 30, 2024, showing a slight decrease[71][76] - Total long-term debt as of June 30, 2025, was $1.9 million, down from $124.7 million as of December 31, 2024[40] - The company had no borrowings outstanding under the ABL Agreement as of June 30, 2025, with $17.1 million in outstanding letters of credit and $59.3 million available to be drawn[46] - The company’s total debt represented 14% of its combined total debt and stockholders' equity as of June 30, 2025, down from 16% as of December 31, 2024[181] Stock and Equity - The weighted average number of common shares outstanding for Q2 2025 was 59.2 million, compared to 62.5 million in Q2 2024[10] - The company has maintained a strong retained earnings balance of $279.6 million as of June 30, 2025, up from $273.7 million at the end of 2024[14] - The company repurchased treasury stock amounting to $12,043,000 during the six months ended June 30, 2025[21] - The company purchased 2.4 million shares of common stock for a total cost of $12.0 million during the six months ended June 30, 2025, leaving $29.3 million remaining under its share repurchase authorization[54] - The company’s total outstanding shares of common stock decreased from 61.5 million at December 31, 2024, to 60.6 million at June 30, 2025, due to stock repurchases and other factors[52] Revenue Segments - The Offshore Manufactured Products segment generated revenues of $106.586 million in Q2 2025, a 4.0% increase from $101.556 million in Q2 2024[69][74] - Completion and Production Services segment revenues decreased to $29.424 million in Q2 2025 from $46.421 million in Q2 2024, a decline of 36.6%[69][74] - Downhole Technologies segment revenues were $29.396 million in Q2 2025, down from $38.406 million in Q2 2024, representing a 23.5% decrease[69][74] - The Offshore Manufactured Products segment reported revenues of $106.6 million in Q2 2025, up from $101.6 million in Q2 2024, reflecting a variance of $5.0 million[115] - The Completion and Production Services segment experienced a revenue decline of $16.997 million in Q2 2025 compared to Q2 2024, totaling $29.4 million[115] - The Downhole Technologies segment reported revenues of $29.4 million in Q2 2025, down from $38.4 million in Q2 2024, a decrease of $9.010 million[115] Cash Flow and Expenses - Cash flows from operations totaled $24.3 million in the first six months of 2025, a significant increase from $1.1 million used in operations during the same period in 2024[165] - Selling, general and administrative expenses were $23.0 million in Q2 2025, down from $26.4 million in Q2 2024, a decrease of $2.4 million, or 10%[126] - Capital expenditures for the first half of 2025 totaled $19.480 million, up from $15.881 million in the same period of 2024, indicating increased investment in operations[71][76] Market Conditions and Outlook - The average spot price of WTI crude oil declined by 10% in the second quarter of 2025, influenced by trade tariffs and OPEC+ plans to increase production[92] - The average price of Brent crude for the quarter ended June 30, 2025, was $68.07 per barrel, down from $84.68 in the same quarter of 2024[90] - The average price of Henry Hub natural gas for the quarter ended June 30, 2025, was $3.19 per MMBtu, compared to $2.07 in the same quarter of 2024[90] - The company expects that ongoing trade conflicts and increased crude oil production may adversely affect demand for its products and services, particularly in the U.S., over the balance of 2025[93] Backlog and Future Revenue - As of June 30, 2025, the company had $260 million of remaining backlog related to contracts with an original expected duration of greater than one year, with approximately 38% expected to be recognized as revenue in the remaining six months of 2025[79] - Approximately 36% of the remaining backlog is expected to be recognized as revenue in 2026, with the balance recognized thereafter[79] - The backlog for the Offshore Manufactured Products segment increased to $363 million as of June 30, 2025, up from $311 million as of December 31, 2024[104] - Bookings for the Offshore Manufactured Products segment totaled $112 million in Q2 2025, resulting in a quarterly book-to-bill ratio of 1.1x[104] Governance and Compliance - The company’s disclosure controls and procedures were deemed effective as of June 30, 2025, providing reasonable assurance regarding required disclosures[192] - Certifications from the Chief Executive Officer and Chief Financial Officer are included, ensuring compliance with the Securities Exchange Act of 1934[205] - The report includes various exhibits related to the company's governance and financial agreements, such as the Fifth Amendment to Credit Agreement dated July 28, 2025[205]